Long Island Bankruptcy Attorney

What is the bankruptcy means test?

A "means test" is a test that one must complete before they become eligible to file for Chapter 7 bankruptcy. The test compares a person's average income with that of the average median income of the state in which they live. To calculate the person's average income, the test averages their gross monthly income for the preceding six months. This includes any gifts received, income from a non-filing spouse or income from a business owned.

To qualify for Chapter 7, your income must be less than the median income for families in your state - if it is higher, then you may qualify for Chapter 13 bankruptcy which helps you pay back some or all of your debts over time interest free. The means test is made mandatory by bankruptcy courts to ensure that individuals looking for a way to avoid paying their debts do not take advantage of this chapter of bankruptcy, which effectively cancels one's debt upon completion of the process.

Even if you didn't pass the means test, you're not without hope!

At the Law Offices of Scupp & Berman, LLP, we understand the importance of this type of test. Even if your income does exceed the median income for a family of your size, we can still help you determine if you qualify. While new bankruptcy laws enacted in 2005 changed and put new limits on who could qualify for Chapter 7 bankruptcy, we have found most who would have qualified before will still qualify now under the new laws. By working with our firm, you can rest assured knowing that every avenue of action will be pursued to give you the best possible chance of success.

Bankruptcy Lawyer in Suffolk and Nassau County

Considering bankruptcy is a major decision and you should have all the information and the advice of an experienced bankruptcy attorney before reaching your decision. If you are intending to file for Chapter 7 bankruptcy but require assistance in completing your means test, contact an experienced Long Island bankruptcy lawyer from our firm today. We can provide you with the necessary information for a successful test completion as well as guidance throughout your Chapter 7 proceedings.

At our firm, we have successfully helped many individuals and their families escape from the overwhelming stress that is caused by mounting bills, harassing collection calls and the worry of providing for your family's welfare. We can show you how bankruptcy could help you eliminate or reduce your debts and allow you to keep you car, home and other possessions. There are also some new requirements for people who file for Chapter 7 regarding credit counseling that we can explain to you. Our attorneys have been helping individuals for over two decades, and our goal is to serve the best interests of our clients in every case. You can be confident knowing that if you work with us that your best interests will be protected to the full extent of the law.

Contact a Long Island bankruptcy attorney from our firm for a free consultation. We can help you to take the means test and discover if you qualify for Chapter 7 bankruptcy.